If you are one of the 31.7 million small businesses in the US, we’ve got great news to share – recently, the SSBCI approved $1.5 billion in small business funding.
The SSBCI, or State Small Business Credit Initiative, provides funding to promote startups and small business developments, particularly in disadvantaged communities.
The state plan approvals on July 18th are a part of a wider strategy to make capital more accessible to small firms and entrepreneurs. These funds are available on a rolling basis to states, territories, the District of Columbia, and Tribal Governments. We’re here to share some info on how you can access some of that $.
How small business grants work:
Before getting down to the nitty-gritty of the funding that became available through SSBCI, let’s cover some basics:
How to define a ‘small business’? The US Small Business Administration (SBA), defines small businesses as an independently owned for-profit with less than 1,500 employees and a maximum of $41.5 million in total/gross income plus cost of goods sold.
What are grants? Grants are a relatively risk-free way of funding business activities and leveraging free and non-repayable government money to move towards scale. That being said, researching, finding, and applying for the appropriate grants for your business can feel hard and confusing. We built Pocketed to simplify this process.
Further helpful resources:
Grant funding breakdown by state:
The announced SSBCI funding is available in various forms. Here is a list of the most important ones you should know about:
- Venture capital funds: money allocated by venture capital to finance high-growth startups and emerging companies
- Loan participation: loans made by multiple lenders (such as banks), to one single borrower
- Loan guarantees: a loan that is backed and paid back by a third-party, if you can’t
Take a look at the funding breakdown below to find some of that sweet cash in your state/region:
Arizona was approved for up to $111 million in venture capital programs and a loan guarantee program aiming to focus on underserved businesses.
Connecticut was approved for up to $119.4 million supporting early-stage businesses focusing on clean energy, clean manufacturing, and climate resiliency, while promoting entrepreneurs with diverse backgrounds.
Hawaii was approved for up to $62.02 million through venture capital, loan participation, and credit enhancement programs, focusing on providing capital for underserved communities and projects that diversify Hawaii’s economy and lessen its reliance on tourism.
Indiana was approved for up to $99.1 million in a venture capital and a loan fund investment program, aiming to promote underserved founders, innovators and startups.
Kansas was approved for up to $69.5 million through a loan participation program and an equity fund. These funds will be allocated to women-owned and minority-owned small businesses, as well as underserved communities.
Maine was approved for up to $62.2 million in four different programs: venture capital programs (2), a loan participation program, and a loan guarantee. These programs will focus on funding startups with less than 10 employees, minority-or-women-owned businesses, rural businesses, and firms aiming to promote the state’s ten-year economic development plan.
Maryland was approved for up to $198.4 million in eight different loan and equity investment programs which will provide capital to small business development, underserved businesses, and minority-or-women-owned businesses.
Michigan was approved for up to $236.9 million in funding, targeting the manufacturing sector and industries with high wages and high job growth potential.
New Hampshire was approved for up to $61.5 million In five different programs targeting rural and underserved areas of the state.
Pennsylvania was approved for up to $267.8 million in equity capital investments, loan participation, and venture capital investments programs. These programs will allocate their funds to the management of underserved venture capital firms, as well as financing small business borrowers.
South Carolina was approved for up to $101.3 million in a loan participation program and a venture capital program, aiming to address funding gaps for small businesses in underserved communities and rural areas of South Carolina.
South Dakota was approved for up to $60 million in a loan participation program for underserved communities.
Vermont was approved for up to $57.9 million in two venture capital programs and a loan participation program to provide companion loans in underserved markets.
West Virginia was approved for up to $72.1 million with an aim to increase small business’ access to venture capital.